Top Apple analyst says to expect an 'S version' of the Apple Watch in March

Piper Jaffray analyst Gene Munster says he expects the Apple
Watch to get a slight hardware refresh this spring, including new
internal components such as an upgraded processor and
battery.

In a note sent to clients on Tuesday, he explained:

Apple Watch: expect more of an "S" version with similar design,
upgraded components including processor[,] battery, new band
styles. Unlikely to have a wireless radio, which would allow
standalone (i.e. decoupled from iPhone).

The "S" version Munster mentions references Apple's typical
iPhone upgrade cycle. The first version of the Apple
Watch went on sale in April, so a spring refresh would keep the
product on an annual upgrade cycle. And given that Apple likes to
reuse its iPhone designs and update the internals to
create "S" versions, it would make sense to do it for
its watch as well.

Apple is expected to announce
a new iPhone and iPad at an event in March. However, previous
reports have suggested that Apple is unlikely to announce
new watch hardware in the spring, instead saving the launch of
the second-generation version for the fall.

The typically reliable Mark Gurman
expects the Apple Watch to gain new bands and software this
spring, but no new hardware or upgraded processor.

Gene Munster remains one of the most bullish Apple analysts,
giving the stock a price target of $172.